WisdomTree has launched the WisdomTree Equity Premium Income Digital Fund (EPXC), a tokenized fund designed to bring options income strategies to the blockchain. The fund is available on the WisdomTree Prime and WisdomTree Connect platforms for both retail and institutional investors.

EPXC seeks to track the Volos U.S. Large Cap Target 2.5% PutWrite Index. This strategy involves selling put options on the ETF trust that tracks the S&P 500 Index bi-weekly, targeting a 2.5% premium. The fund aims to generate consistent income and perform well in flat-to-down markets.

Will Peck, Head of Digital Assets at WisdomTree, stated that the company is excited to bring an options overlay strategy to the onchain community. He added that EPXC is an exciting addition to WisdomTree's suite of tokenized funds, leveraging their expertise in building intuitive funds designed to perform in different market conditions. The fund's ability to generate income, reduce downside risk, and manage volatility gives users choice as they execute their strategies onchain via WisdomTree Prime and WisdomTree Connect.

The tokenized structure of EPXC offers real-time transparency, programmable liquidity, and seamless integration with digital wallets, contrasting traditional ETFs. This allows crypto-native investors and institutions to access real-world asset (RWA) exposures in regulated structures without operating offchain. EPXC is the fifteenth tokenized fund available on the WisdomTree platforms, supporting users' ability to invest in yield-bearing and diversifying assets.

WisdomTree's move is seen as a strategic pivot toward digital finance, aligning with investor demand for yield, transparency, and innovation. By combining options strategies with blockchain's efficiency, WisdomTree has carved out a unique niche in a crowded market.

The fund's investment strategy is subject to risks related to rolling. The sale of cash-secured SPY puts serves to partially offset a decline in the price of SPY to the extent of the premiums received. The potential return to the Fund is limited to the amount of option premiums it receives; however, the Fund can potentially lose up to the entire strike price of each option it sells. By virtue of its put option sales strategy, Fund returns will be subject to an upside limitation on returns attributable to SPY, and the Fund will not participate in gains beyond such upside limitation.